The lawsuit targets Netcapital and several of its officers, claiming the firm improperly recognized revenue from consulting agreements tied to entities controlled by John Fanning. According to the complaint, these agreements were either forged or backdated, with Netcapital Advisors failing to provide substantive services. The litigation asserts that these maneuvers rendered the company’s Sarbanes-Oxley Act certifications and broader financial disclosures materially false.
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Netcapital Faces Securities Class Action Over Alleged Sham Agreements
Investors who purchased Netcapital Inc. securities between December 15, 2021, and September 3, 2026, are being urged to join a class action lawsuit. Law firm Bronstein, Gewirtz & Grossman, LLC filed the complaint, alleging the company misled shareholders through backdated contracts and undisclosed related-party transactions.
Shareholders who incurred losses have until December 7, 2026, to apply for lead plaintiff status. While the firm operates on a contingency fee basis, participation in a potential recovery does not mandate a formal role as lead plaintiff. Interested parties can contact Peretz Bronstein or Nathan Miller at 917-590-0911 to review the filing.
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